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Tag: Banking

  • 8 Ways To Simplify Business Banking

    In the world of business, every minute counts. Efficiency and simplicity are not just ideals but necessities, particularly when dealing with finances. Financial transactions and money management should be straightforward, enabling you to focus on your business’s core operations. One way to achieve such simplicity is through effective business banking strategies. These strategies are intended to eliminate complications, reduce unnecessary effort, and streamline financial operations. 

    In this context, the Mercury bank account for foreigners is worth mentioning. It provides an excellent example of simplifying business banking by allowing non-resident business owners to manage their finances efficiently. This innovative solution is just one example of how business banking can be simplified, leading us to our discussion’s heart.

    • Leverage Online Banking

    In today’s digital age, online banking has become crucial to managing finances. Online banking lets you easily transfer funds, pay bills, and monitor transactions from anywhere. This eliminates the need to visit a bank in person, saving you precious time. 

    Online banking also offers features like mobile check deposits and low-balance alerts, making it a convenient and efficient way to manage your finances. By leveraging online banking, you can simplify your financial tasks and focus on growing your business.

    • Consider Consolidation

    Juggling multiple accounts across different banks can be challenging and time-consuming. To simplify your banking activities, it’s worth considering consolidating them with a single provider. This approach can simplify management and enable you to keep a closer eye on your cash flow. Having all your accounts in one place allows you to easily monitor your balances, transactions, and fees. 

    Consolidation can also make it easier to access financing options, such as loans or lines of credit. Overall, consolidating your banking activities can save you time and energy while making managing your finances less stressful.

    • Automate Payments

    Automating payments is an effective way to streamline your financial operations. Setting up recurring payments for monthly bills and payroll can significantly reduce administrative work and avoid late payment fees. This simple approach keeps your finances on track without requiring continuous monitoring. As you transition to this strategy, remember that consistency is key. The more consistent you are in your banking strategies, the easier it will be to manage your financial operations. By automating payments and maintaining consistency, you can simplify your financial tasks and focus on growing your business.

    • Use Cloud-Based Accounting Software

    Cloud-based accounting software is an excellent tool for simplifying financial processes. These platforms automatically update financial data, making tracking income, expenses, and tax obligations easier. By using cloud-based accounting software, you can access real-time financial information from anywhere, at any time. This can help you make informed decisions about your business and manage your finances more efficiently. Additionally, cloud-based accounting software can reduce the risk of errors and save time on manual data entry. Using cloud-based accounting software is a smart investment for any business looking to streamline financial operations.

    • Embrace Mobile Banking

    Mobile banking apps offer a convenient way to conduct banking transactions. As a busy entrepreneur, embracing this technology can be a significant time-saver. With mobile banking, you can easily transfer funds, pay bills, and monitor transactions from your smartphone or tablet. This eliminates the need to visit a bank in person, saving you precious time. Additionally, mobile banking apps offer features like mobile check deposits and alerts for low balances, making it a convenient and efficient way to manage your finances. By embracing mobile banking, you can simplify your financial tasks and focus on growing your business.

    • Set Up Alerts

    Stay in the loop by setting up banking alerts. Whether it’s a deposit notification, a low-balance alert, or an unauthorized transaction warning, these alerts can keep you updated on your financial status and help prevent potential issues.

    • Get Expert Advice

    Never hesitate to seek professional help. A financial advisor or a dedicated bank representative can provide personalized advice tailored to your business needs. They can help simplify your banking operations and assist in financial decision-making.

    In moving toward our last point, remember that simplicity is about removing complexity, not necessarily reducing functionality. It’s about making sure everything serves a clear purpose.

    • Implement Payroll Services

    Lastly, consider integrating payroll services with your business bank account. Such services can streamline your payroll process, ensure accuracy, and help comply with legal requirements.

    Taking these steps toward simplifying your business banking can save valuable time, increase accuracy, and let you focus more on your business’s operational aspects. Implementing these strategies won’t happen overnight, but the benefits will be worthwhile.

    Conclusion

    Simplifying business banking may seem daunting initially, but with the right strategies, it becomes manageable. Implementing the aforementioned methods can streamline your financial operations, provide a clearer picture of your cash flow, and ultimately enable you to concentrate more on what matters most – growing your business. Simplify to amplify your business’s success because simplicity is the ultimate sophistication.

     

  • Avaloq Partners With World’s Largest Asset Manager

    Avaloq Partners With World’s Largest Asset Manager

    Swiss banking software maker Avaloq is partnering with Blackrock. Together, the companies aim to make their services available to private banks and wealth managers.

    According to a joint announcement Wednesday, Avaloq and Blackrock are entering into a strategic partnership. Furthermore, Blackrock has acquired a minority stake in Avaloq. Details of the Deal were not disclosed.

    Under the agreement, Avaloq’s software will dock onto Blackrock’s investment engine Aladdin, with the aim of giving private banks and wealth managers access to comprehensive end-to-end technology and investment solutions, it said.

    Streamline Processes

    Avaloq’s leading core banking is used by institutions with a total of approximately $4 trillion in assets under management and will now be linked to Blackrock’s, Aladdin.

    This partnership will help us empower our clients to streamline processes, enhance risk analytics, and make more informed portfolio decisions, ultimately delivering greater value to their clients, Avaloq’s Co-CEO Martin Greweldinger,  said.

    With the Avaloq partnership, Blackrock will gain access to the core banking IT system which is widely used in Europe and Asia. At the same time Avaloq can benefit from Blackrock’s platform, which collects data from all accessible investments and is used to calculate the risk of around 10 percent of all assets under management in the world. In Switzerland, users include UBS.

    BlackRock and Avaloq joining forces will help clients reduce the complexity and friction inherent in many of today’s digital transformations. Our combined offering will make it extremely convenient for clients to implement and adopt Aladdin Wealth’s industry-leading capabilities as it will be deeply integrated with Avaloq’s core banking solutions, Venu Krishnamurthy, Global Head of Aladdin Wealth Tech, said.

    With the new offering, the two partners want to appeal to both new customers and existing users of Aladdin and the Avaloq software, they said. The joint solution, which will be sourced from the data cloud as a pure «software as a service» offering, is currently being implemented into two of Avaloq’s customers.

    The combined offer also meets Swiss data protection requirements, the statment said, adding that Aladdin Wealth anonymizes the client portfolios that the technology creates on behalf of third parties.

    For Avaloq in particular, the collaboration with the US giant is the first of a new slate of offerings the company is working on under the wing of its parent company NEC.

    Avaloq no longer sees itself as a mere software supplier, but increasingly as a coordinating force that orchestrates emerging digital ecosystems in finance.

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  • UBS Expects to Ink Government Loss Guarantee Tomorrow

    UBS Expects to Ink Government Loss Guarantee Tomorrow

    In a regulatory filing with the SEC, UBS said it expects to wrap up its agreement with the Swiss government over loss guarantees as part of its government-orchestrated takeover of Credit Suisse.

    When UBS agreed to take over troubled Credit Suisse at the behest of the Swiss government, part of the deal was for the federal government to absorb up to nine billion Swiss francs ($9-9 billion) of losses related to Credit Suisse after UBS shouldered the first five billion.

    That agreement, which is one of the final pieces of the puzzle that needs to be completed for the takeover, is expected to be finalized tomorrow.

    UBS Group AG expects that the Loss Protection Agreement will be finalized by June 7, according to a filing with the US Securities and Exchange Commission (SEC), which will allow it to proceed with the takeover.

    UBS said it expects to complete its formal acquisition of Credit Suisse as soon as June 12, subject to the registration statement being declared effective by the Securities and Exchange Commission (SEC) and to the satisfaction, or waiver by UBS of remaining closing conditions. The shares will then be delisted on the SIX Swiss and New York Stock exchanges.

    A great deal of complexity surrounds the completion of the deal. So much so that UBS is said to be considering delaying its interim results, according to additional reporting by finews.com.

    Losses over 14 billion francs which were not included in the Special Ordinance making the merger possible, «requires a separate legal basis in the form of a parliamentary approval in the ordinary legislative procedure as well as the commitment credit,» the SEC filing said.

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  • Foreign Bank Expansion Slows in Mainland China

    Foreign Bank Expansion Slows in Mainland China

    The opening of China’s financial sector has hit a speed bump, particularly amongst US banks, due to a changing business environment.

    In 2019, China decided to accelerate the opening of its financial sector with the introduction of various new measures, including the elimination of foreign ownership limits. At the time, mainland China’s financial market had an estimated value of $45 trillion and numerous global banks lauded the opportunity to compete onshore in the world’s second largest economy.

    The environment has changed in less than four years following the nation’s zero-Covid policy and a significant shift in US-China relations. Onshore expansion by global banks is expected to slow down for various reasons.

    US banks are headlining the retreat, primarily due to a dented outlook. Goldman Sachs, for example, reportedly revised projections for its five-year plan in China after the business environment drastically changed with a reduction of more than one-tenth of its workforce in the mainland after doubling its headcount to over 600.

    Morgan Stanley is opting against building an onshore brokerage unit, instead making a smaller investment of about $150 million in its futures and derivatives businesses. On Monday, the bank received regulatory approval to set up its futures unit in China.

    It will be a longer journey than we would wish to build up scale and reputation to do business gradually,» said JPMorgan China chief executive Mark Leung in an interview on the bank’s plans in the mainland

    Elsewhere, foreign bank expansion is being slowed down by structural changes outside of China.

    The combination of UBS and Credit Suisse is expected to create some challenges due to existing exposure in China by both Swiss lenders. Under the current regulations of the China Securities Regulatory Commission, a company cannot be a majority shareholder in more than one securities firm nor hold stakes in over two asset management firms.

    This would require the newly enlarged UBS to offload shares, creating further complications to an already complex integration.

    Nonetheless, not all banks are hit by worsened sentiments or structural hurdles with HSBC being one of the most notable optimists, as part of its broader plans to pivot its global business to Asia.

    The British lender currently owns 49 percent of its asset management joint venture, HSBC Jintrust Fund Management, and has reportedly reached an agreement earlier this month to purchase the remaining 51 percent.

    The bank is also rapidly growing its wealth business onshore with the rollout of various new product capabilities, such as an upgraded legacy planning offering in April. According to chief financial officer Georges Elhedery, HSBC is on track to hire around 2,000 private wealth managers in China’s insurance sector over the next two years, after adding 1,000 in 2022.

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  • UBP Acquires Japanese Asset Manager

    UBP Acquires Japanese Asset Manager

    Swiss-based Union Bancaire Privée has acquired a new asset manager specializing in Japanese small-cap equities.

    According to a statement, UBP has acquired 100 percent of the shares issued by Angel Japan Asset Management (AM). Founded in 2001, Angel Japan AM is a Tokyo-based independent investment advisor specializing in Japanese small-cap equities.

    Hirotaka Usami leads the firm and houses five investment professionals including four portfolio managers with an average experience of 24 years.

    It currently manages three strategies (IPO, new growth and steady growth) with total assets under advisory of $1.2 billion.

    Following the transfer of ownership, Hirotaka Usami will become chairman of Angel Japan AM’s newly created board of directors while current chief operating officer Ryota Bando will be appointed chief executive officer.

    Angel Japan AM’s current employees are expected to remain with the firm.

    Other than the changes to its governance structure and directors, there will be no changes to Angel Japan AM’s current investment process, investment philosophy, investment style and investment team.

    The acquisition follows a successful partnership since 2018 with Angel Japan AM advising UBP’s Japanese small-cap equities strategy and outperforming the relevant benchmark.

    The acquisition of Angel Japan AM underscores UBP’s high conviction on the investment opportunities in the global small-cap equity segment, notably in Japan, and as to the team’s unique ability to seize them, said UBP asset management co-CEO and head of institutional clients Nicolas Faller.

    Taking on the ownership of Angel Japan AM will not only broaden our distribution channels to onshore Japanese clients but will also strengthen our in-house capabilities and value proposition to serve our offshore clients better.

     

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  • BNP Paribas Bags Credit Suisse Specialist Team

    BNP Paribas Bags Credit Suisse Specialist Team

    The revolving door at Credit Suisse keeps spinning, as the Swiss bank loses a team of specialists to BNP Paribas.

    BNP Paribas is strengthening its equities team in London by hiring Credit Suisse’s event-driven team. Susan Stryker Marinello, an event-driven specialist for the EMEA region at the Swiss bank, and risk arbitrage traders Andy Martin and Simon Scott are joining the French bank.

    Before their stint at Credit Suisse, the team of specialists previously worked together at Citi.

    The hiring of the unit is an important step following BNP Paribas’ acquisition of Exane in 2021, the sources added. As part of that acquisition, BNP Paribas brought equity trading, research, and derivatives activities in-house after a 17-year partnership with Exane. It said the new hires are part of BNP’s expansion into cash equities following Exane’s return.

    Neither Credit Suisse nor BNP Paribas had any comment.

  • More Barclays Bankers Decamp for UBS

    More Barclays Bankers Decamp for UBS

    For the second time in weeks, Barclays bankers are leaving for UBS. Six investment bankers in the US are on the move.

    UBS appears to have found rich poaching grounds at Barclays, as it is hiring half a dozen investment bankers specializing in technology, media, and telecom companies,  citing sources familiar.

    According to the sources, Richard Hardegree, Laurence Braham, Ozzie Ramos, Richard Casavechia, Neil Meyer, Jason Williams, and Ken Tittle are those departing for UBS locations in New York, San Francisco, and Chicago.

    The recent departures follow three more in April, when it was announced Marco Valla, Jeff Hinton, and Kurt Anthony are joining the UBS banking team in New York, with Valla appointed co-head of global banking alongside Javier Oficialdegui.

    Although UBS wants to reduce its investment banking to 25 percent or less of risk-weighted assets as part of its new structure with the merger with Credit Suisse, it wants to stay active in certain sectors. The recent hires appear to confirm that.

    Neither bank commented to Bloomberg about the departures, first reported by Reuters.

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  • Techcombank remains on track to hit 2025 targets

    Techcombank remains on track to hit 2025 targets

    Techcombank has set a CASA (current account savings account) target of 55% by 2025 by investing in digitalization and increasing lending to retail customers and SMEs.

    At its recent annual general meeting, CEO Jens Lottner said he was optimistic about the bank’s ability to achieve the targets despite market volatility.

    Lottner said though Vietnam’s economy has recovered, higher borrowing costs, tighter credit and slower GDP growth in the first quarter of 2023 remain challenges.

    The challenges for the banking sector include the high-interest rates, tight liquidity that has pushed up the cost of funds, compressing the net interest margin, and the volatility in the bond and real estate markets.

    Techcombank has entered the third year of its five-year transformation journey, and stuck to its medium-term targets that focus on three pillars: Data, Digital and People.

    According to Lottner, the bank’s digital transformation accelerated significantly in 2022 due to heavy investments in digital technologies.

    In 2022 the lender deployed digital platforms for its retail and business customers, including the Techcombank Mobile and Techcombank Business apps. Around 90% of customer transactions are conducted via the bank’s digital platforms.

    “Techcombank is investing in digitalization to create seamless experiences for customers in both online and offline channels,” Lottner said.

    “This process requires investment, technology capability and integrating various systems and platforms across the bank.”

    “Techcombank is now at an inflection point, and ready to accelerate.”

    The bank is employing artificial intelligence to create human-like interactions with customers over digital platforms, analyze data to understand the needs of individual customers and offer each customer the right products and services throughout their financial lives.

    “The technology application helps reduce the customer acquisition cost while enhancing customer value,” Lottner explained.

    Techcombank has been adding around one million new customers a year and plans to add another 2-3 million by 2023, primarily through digital channels.

    Techcombank plans to allocate more of its credit quota to retail customers and SMEs to diversify its credit book while reducing exposure to the property sector, thus improving risk diversification.

    By increasing lending to retail and SMEcustomers, Techcombank aims to broaden its exposure to growing sectors such as fast-moving consumer goods, auto, utilities, and others.

    But Lottner said this strategy would be flexible and depend on market dynamics.

    As demand returns, the strategic shift to retail and SMEs is expected to resume in the second half of the year.

    Techcombank has set a CASA target of 55% by 2025. Increasing the CASA ratio is the bank’s top priority. In 2022, it had a CASA ratio of 37%.

    Lottner remained optimistic about the real estate and bond markets.

    “As customer confidence returns and interest rates fall, appetite among affluent customers for bonds, stocks and real estate will rise. The need to transact and move money in and out of assets will lead to a shift from term deposit accounts back into CASA.

    “Techcombank is working hard to strengthen its wealth proposition through better products, more experienced relationship managers and advisory processes to ensure its products are ideally suited to the individual risk-return expectations of every customer.”

    Techcombank is strengthening its offerings in transaction banking for SME customers while enhancing its credit underwriting capabilities.

    Techcombank is launching new initiatives to drive the acquisition of account relationships.

    It plans to launch new cash and liquidity management and treasury management services on the corporate banking side. For merchants, the bank is preparing to launch a series of new offerings in the coming months while it is also releasing a host of new digital features and functionalities to drive online retail customer engagement, as well as new rewards and loyalty platforms.

    “I am confident that we should be able to go to 55% CASA ratio if we continue to follow our strategy,” Lottner said.

    In 2023 Techcombank continues to invest in digital transformation and transition to the cloud to meet customers’ evolving needs.

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  • Standard Chartered cuts Vietnam growth forecast to 6.5%

    Standard Chartered cuts Vietnam growth forecast to 6.5%

    Standard Chartered has reduced Vietnam’s GDP growth forecast for this year by 0.7 percentage points to 6.5%.

    In a release Thursday the British bank said it amended the forecast it had made in January of 7.2% growth after considering external factors more carefully with Vietnam’s macro indicators slowing down in the last four months.

    Exports have declined by 11.8% year-on-year, and the trade surplus is US$6.4 billion. Inflation for April was 2.8%, the third consecutive month of decline, though core inflation – not including food and energy prices — was 4.6% as retail sales jumped by 11.5%.

    FDI fell by 17.9% to $8.9 billion. Imports decreased by 15.4% year-on-year.

    “Vietnam imports a lot, so import indicators going down considerably shows that economic activity is slowing down despite strong domestic consumption”, Tim Leelahaphan, the bank’s economist for Thailand and Vietnam, said.

    Many other international financial institutions have also adjusted their Vietnam growth forecasts downward.

    The IMF has reduced it from 6.2% to 5.8%, the World Bank from 6.7% to 6.3%, and the ADB from 6.7% to 6.5%.

    Vietnam’s economic growth this year is likely to be constrained by the global economic downturn, monetary tightening in developed countries, rising commodity prices, and geopolitical issues.

    The government targets 6.5% growth, but there are challenges ahead with the GDP only growing by an annualized 3.32% in the first quarter.

    Minister of Planning and Investment Nguyen Chi Dung expressed concern about growth at a recent meeting, saying to achieve the target the economy needs to grow at 6.7%, 7.5% and 7.9% in the next three quarters.

    Standard Chartered predicted that the State Bank of Vietnam would reduce the refinancing rate by 0.5 percentage points to 5% by the end of the second quarter and maintain that rate until the end of 2025.

    But it did not rule a hike in rates, especially towards the end of the year, due to the possibility of the central bank focusing more on stability than growth.

    “Since the start of 2023 the SBV has turned to supporting the economy’s recovery,” Leelahaphan said.

    “Besides cutting interest rates, it also helped struggling businesses by giving them more time to deal with illiquidity.”

    Since April loan terms have become easier, with banks rolling over debts for up to 12 months and cutting interest rates.

    But the real estate market needs more support, with all measures taken until now only helping relieve short-term loan repayment pressure, he added.

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  • UBS Announces its Game Plan and Leadership Team

    UBS Announces its Game Plan and Leadership Team

    The legal integration of UBS and Credit Suisse will close in the next few weeks. The team to manage the new venture has also been announced. Ulrich Koerner resurfaces.

    Following UBS’s government-imposed takeover of Credit Suisse on March 19, there has been much speculation about who would lead the new entity and what it would look like. UBS Group AG will manage the two parent companies of UBS AG and Credit Suisse AG, each with its subsidiaries and branches, to serve its clients and deal with counterparties, according to a statement from UBS Tuesday.

    Overall responsibility falls to the UBS Group board of directors and the UBS executive board. Until the two entities integrate further, Credit Suisse will rely on its established governance and risk control frameworks, with some new policies added so that UBS can effectively oversee it.

    This is a pivotal moment for UBS, Credit Suisse, and the entire banking industry. Together we will solidify and represent the Swiss model for finance worldwide, one that is capital-light, less reliant on taking risks, and anchored by stability and high-touch service. This transaction will allow us to offer attractive returns to our shareholders and give us the capacity to further invest and grow, said UBS CEO Sergio Ermotti.

    The overall structure will comprise five business divisions, encompassing seven functions and four regions, with each represented by an executive board member of the group, all reporting to Ermotti. In addition, Credit Suisse CEO Ulrich Koerner becomes a member of the UBS Group’s executive board. The new divisions are as follows:

    • Iqbal Khan remains President of Global Wealth Management
    • Rob Karofsky remains President Investment Bank
    • Sabine Keller-Busse remains President of Personal & Corporate Banking and President of Switzerland
    • Suni Harford remains President of Asset Management and Lead for Sustainability & Impact
    • Beatriz Martin Jimenez becomes Head Non-Core and Legacy and President EMEA. She remains UBS’s Chief Executive for the UK and continues in her role as Group Treasurer until a successor is named.

    As previously announced, UBS will continue to evaluate all options for the Swiss business of Credit Suisse, which is considered the crown jewel of  Credit Suisse. It will «communicate further on this matter in the coming months,» according to the statement.

    Within the functional structure, UBS announced that Sarah Youngwood will be departing.

    • Todd Tuckner is appointed Group Chief Financial Officer. He will become a member of the Group Executive Board with immediate effect and take on the role of CFO at the close of the acquisition. He will succeed Sarah Youngwood, who has decided to leave the firm after the transaction closes.
    • Michelle Bereaux will be Group Integration Officer. She has spent nearly 23 years at UBS and has held various leadership roles across the firm.
    • Mike Dargan will be Group Chief Operations and Technology Officer
    • Stefan Seiler will be the Group Head of Human Resources and Corporate Services.
    • Christian Bluhm will remain Group Chief Risk Officer
    • Barbara Levi will remain Group General Counsel
    • Markus Ronner will remain Group Chief Compliance and Governance Officer

    Tuckner, Martin Jimenez, Bereaux and Seiler also become members of the executive board at the close of the transaction.

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  • UBS Gaming Out Different Scenarios for Credit Suisse

    UBS Gaming Out Different Scenarios for Credit Suisse

    All options appear to be on the table. Switzerland’s largest institution could keep the rescued bank’s investment banking business. Or it might spin off its domestic retail franchise in an IPO.

    UBS continues considering various options for Credit Suisse, citing people familiar with the matter.

    In March, the Swiss government prodded Switzerland’s largest bank to rescue its competitor, which is the country’s second-largest institution.

    The news agency indicated that a number of scenarios are being envisaged. They include keeping Credit Suisse’s troubled investment banking business while selling the remainder rumps of the failed franchise.

    As part of that, UBS also appears to be studying plans to potentially list the Swiss business in an initial public offering once it assumes control of the rescued bank.

    The news agency said the sources queried spoke on condition they remained anonymous. It added that all considerations remain preliminary as attention is currently focused on completing the takeover. Any decision to proceed with an IPO could take months after its successful conclusion.

     

     

  • Techcombank sells headquarters building for $72M

    Techcombank sells headquarters building for $72M

    Techcombank has sold its building in Hanoi for VND1.7 trillion (US$72.49 million), making a profit of over VND730 billion.

    It had bought the building on 191 Ba Trieu Street in Hai Ba Trung District 10 years ago from conglomerate Vingroup, changed its name to Techcombank Tower and made it its headquarters.

    Earlier this year Vietnam’s biggest private bank moved to its headquarters to 6 Quang Trung Street in Hoan Kiem District.

    Techcombank reported pre-tax profits of VND5.6 trillion for the first quarter, down 17% year-on-year.

    Its credit growth for the period was 10.6%.

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  • In February UBS Deemed Credit Suisse Takeover Undesirable

    In February UBS Deemed Credit Suisse Takeover Undesirable

    UBS was preparing a Credit Suisse takeover scenario months before it happened in March. A document filed with the US Securities and Exchange Commission (SEC) provides insight into the process.

    Just weeks before the takeover of Credit Suisse, the UBS board of directors deemed a takeover of its rival undesirable, according to the latest documents the Swiss bank recently filed with the US Securities and Exchange Commission (SEC). An Edgar filing provides insight into the processes leading up to the merger of the two credit institutions.

    Between October 2022 and February 2023, a UBS board of directors strategy committee reviewed developments at Credit Suisse. In early December, management, on behalf of the Strategy Committee, made a preliminary assessment of the impact of a transaction with Credit Suisse if UBS were asked to take an active role in the rescue of its competitor. An initial evaluation was presented to the Strategy Committee on December 19.

    Subsequently, the Strategy Committee, at its meeting on February 20, and the Board of Directors, at its meeting on February 22, concluded that a takeover of Credit Suisse was not desirable for UBS. Still, further analysis was necessary to prepare for a scenario in which the competitor ran into serious financial difficulties.

    In doing so, the Strategy Committee and the Board considered the uncertainty of a reliable valuation of Credit Suisse, its recent business performance and risks, other potential liabilities, and the overall uncertainty of the transaction.

    The Board instructed management to monitor ongoing developments at Credit Suisse and to consider measures that could address UBS’s concerns if UBS had to consider an acquisition of Credit Suisse.

    From January through mid-March 2023, teams of UBS employees, outside legal counsel, and Morgan Stanley, which was asked to assist with the theoretical analysis, conducted financial analyses, according to the SEC filings.

    They evaluated potential legal structures and measures that could address UBS’s concerns in a scenario where the Swiss government actively supported UBS’s acquisition of Credit Suisse. UBS also reviewed the potential negative impact on its bank if Credit Suisse were to be wound down.

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  • Stock dives to 5-week low

    Stock dives to 5-week low

    Vietnam’s benchmark VN-Index dropped 0.63 percent to 1034.85 points Tuesday, lowest in five weeks.

    The index closed 6.51 points lower after losing 1.55 points on Monday.

    Trading on the Ho Chi Minh Stock Exchange (HoSE) increased by 3% to VND9.42 trillion ($401.14 milllion).

    The VN-30 basket, comprising the 30 largest capped stocks, saw 27 tickers lose.

    MSN of conglomerate Masan Group fell 2.7%, followed by HDB of HDBank and NVL of property developer Novaland Group, both with a 2.1% drop.

    STB of Ho Chi Minh City-based lender Sacombank lost 2%, and PDR of Phat Dat Real Estate Development closed 1.9% lower.

    Only two blue chips gained. HPG of steelmaker Hoa Phat Group rose 1.9% and VCB of state-owned lender Vietcombank went up 0.5%.

    Foreign investors were net sellers to the tune of VND139.72 billion, mainly selling VIC of private conglomerate Vingroup and STB of Ho Chi Minh City-based lender Sacombank.

    The HNX-Index at the Hanoi Stock Exchange, where mid and small caps list, was down 1.00% while the UPCoM-Index at the Unlisted Public Companies Market was up by 0.12%.

  • Clients Flooded UBS With New Money in Late March

    Clients Flooded UBS With New Money in Late March

    The merger of UBS and Credit Suisse is expected to result in a behemoth wealth and asset manager, drawing all eyes to the institutions’ first quarter results at the start of the week.

    During the first quarter we saw strong net new fee-generating asset and net new money inflows in global wealth management and asset management, UBS CEO Sergio Ermotti said in a statement accompanying first quarter results.

    The global wealth management (GWM) business attracted $28 billion of net new money during the first quarter, of which $7 billion «came in the last ten days of March, after the announcement of our acquisition of Credit Suisse,» UBS said. Those results should ease some of the concerns that assets being taken out of Credit Suisse are headed to other firms.

    Moreover, UBS brought in $20 billion in new fee-generating assets in its GWM unit and $14 billion in asset management (AM).

    In the Americas region, vital to the Group’s growth plans, the GWM business brought in $8 billion of new money and $4 billion of new fee-generating assets. In Switzerland, new money inflows were $10 billion, while $8 billion in new fee-generating assets were reported along with $2 billion in new loans in GWM and P&C, according to the report.

    EMEA reported new money inflows of $4 billion and generated $3 billion in new assets. Net interest income increased almost 60 percent on the back of higher euro rates. Asia was also a bright star for UBS, bringing in $6 billion of net new money and $5 billion in new fee-generating assets, which marks a 17 percent growth rate over the past twelve months.

    Overall invested assets for GWM were $3 trillion at the end of the first quarter, down from $3.1 trillion in the first quarter of last year.

    UBS said it is focused on completing its acquisition of Credit Suisse in the second quarter of this year, which «will advance our strategy, particularly in global wealth management and Switzerland.» UBS reported that net profit attributable to shareholders was $1.029 billion in the first quarter, about half of the $2.136 billion in the same quarter a year ago. Its Group CET1 ratio was 13.9 in the first quarter, down from 14.2 in the fourth quarter of last year.

    It was a different story on Monday at Credit Suisse, where clients moved 47.1 billion francs of their wealth elsewhere.

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